The extension of the debt repayment period provides favorable conditions for the airline to enhance its financial capacity, strengthen its operational expansion, especially in international markets, thereby improving business efficiency and generating stable cash flow in 2024. This move is also expected to safeguard the interests of the airline’s shareholders and partners, while fostering sustainable development within the domestic aviation industry.

The loan will be extended three times upon maturity. The extension period for each time is equal to the initial refinancing period, with a total maximum extension period of up to five years (including two extensions already granted under Resolution 135 of the National Assembly).

Previously, Vietnam Airlines employed a 4,000 billion VND loan package to bolster liquidity amidst the profound impacts of the COVID-19 pandemic on global airlines. Additionally, it issued shares amounting to an additional 8,000 billion VND to augment its charter capital. By the end of 2022, it had disbursed 220 billion VND in interest payments to banks.

At the Annual General Meeting of Shareholders held on June 21, 2024, Vietnam Airlines confirmed that it has overcome the most challenging period since the COVID-19 pandemic, aiming to balance revenue and expenses in 2024 and operate profitably in subsequent years. The parent company aims for a post-tax profit of VND 105 billion (approximately USD 4.3 million).

In the first quarter of 2024, Vietnam Airlines recorded positive business results. The parent company’s revenue from sales and services reached over VND 22,000 billion (approximately USD 907 million), and the net profit was nearly VND 1,500 billion (approximately USD 61.8 million), showing a clear improvement compared to the same period last year. The consolidated total revenue of Vietnam Airlines, including net revenue, financial income, and other income, reached over VND 31,700 billion (approximately USD 1,307 billion), representing a year-on-year increase of 32.8%. Its consolidated post-tax profit exceeded VND 4,441 billion (approximately USD 183.1 million).

This outcome was attributable to the impressive recovery of international flight operations coupled with the seasonal peak market trend. The contribution of international flights to Vietnam Airlines’ air transport revenue reached 65%, tripling from the lowest point in 2021. The proportion of international flights and revenue has approached pre-pandemic levels, closely approaching those of the first quarter of 2019.

Moreover, profitable subsidiaries also contributed positively to the parent company’s overall business results. Notably, the successful negotiation by Pacific Airlines to return all leased aircraft to the owners and settle debts significantly boosted the airline’s “Other income” category, contributing substantially to the consolidated profit of the first quarter of 2024.

In the second half of 2024, Vietnam Airlines will continue to expand its fleet, route network, and implement restructuring measures to maintain efficient operations, generate cash flow to support business expansion, and ensure liquidity for financial obligations.

Starting from July 2024, Vietnam Airlines will receive additional A320neo and Boeing 787-10 aircraft, two modern aircraft types with many superior features, enhancing service quality, saving fuel, and reducing emissions. It is also preparing to open a new route to Munich (Germany) in October this year, following the recent inauguration of three routes to Manila (Philippines) and Chengdu (China). These new routes will bring the total number of regular domestic and international routes to 92, equivalent to the pre-pandemic peak in 2019.

This effort by the national carrier aims to increase the attraction of international tourists to Vietnam and boost investment and trade, stimulating tourism amid the prolonged impacts of the COVID-19 pandemic on Vietnam’s aviation and tourism sectors. Besides new routes, Vietnam Airlines has actively collaborated with tourism agencies to organize promotion activities to attract foreign tourists from major markets such as Thailand, Malaysia, Singapore, China, South Korea, Australia, the UK, France and Germany…

In 2024, Vietnam Airlines has set a target of achieving parent company revenue of VND 80,984 billion (approximately USD 3.339 billion) and consolidated revenue of VND 105,946 billion (approximately USD 4.368 billion). The airline also accelerates the divestment process in several subsidiary companies and implements measures to optimize costs, revenue and financial management.